When it comes to being a superhero, most people do not consider themselves invincible.
However, when it comes to protecting yourself and loved ones against sickness, accidents and death, a lot of Australians adopt the ‘she’ll be right’ attitude. This explains why Australians are one of the most under insured nations in the developed the world.
Unfortunately, the reality is that we don’t have to look very far to see the terrible emotional and financial impact that sickness and death can have on the lives of our friends, family and loved ones.
So it is important that when taking on any additional debt, such as buying a house or re-financing a home loan, that you conduct a ‘reality check’ to determine the potential risks and how best to protect against them.
A simple starting point is to ask yourself:
How long would my family be able to keep our home (i.e. keep making the monthly repayments):
- If I (or my partner) died tomorrow?
- If I had to stop work due to health issues or an accident?
If the answer means the house would have to be sold at some point, then an immediate analysis of your Life insurance requirements should be completed.
Personal insurances, such as Life insurance, Income Protection, Trauma and Total and Permanent Disability policies, normally form a key part of protecting your situation. These can be tailored to ensure that debts and cost of living expenses can continue to be met, no matter what life throws at you.
It is true that the above events may entitle you to some Work Cover, Centrelink Disability Support Pension or the ability to access part of your super. However, in our experience these benefits (on their own), are usually not enough to save the family home from being sold.
At Crest Financial Services, as part of our financial planning process, we assist clients to put in place appropriate personal insurances and advise on how to best structure these to minimise cost and impact on your daily cash flow.
Become a real superhero for your family, and get advice on how to best protect them.